Direct Loan

Workshop

“Find What You Need”

March 28, 2004

Claire “Micki” Roemer

Cindy Battle
 Agenda

§ Introduction
§ Publications
§ Overview
§ Entrance Counseling
§ Exit Counseling
§ On the Horizon
§ Questions
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 DL Publications
§ Entrance and Exit Counseling
materials
– Exit available now
– Entrance available by end of April

§ Publications being revised

– Direct Loan Basics
– Plus Loan Basics

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 Direct Loans Online
From Start to Finish
http://www.studentaid.ed.gov

– FAFSA
– Promissory notes
Student Portal

– Entrance Counseling
Exit Counseling
– Repayment Servicing
– Loan Consolidation

Universal single PIN access to all sites

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Direct Loan Servicing Online
http://www.dl.ed.gov
Key Features
• Highly Secure
ü PIN protected
ü Data encryption
• Section 508 Compliant
for borrowers with
disabilities
• English/Spanish option
for entire site
• Online Tour – tutorial to
aid borrowers in using
site
• Search Feature & Site
Map
• Your Account
• Entrance and Exit
Counseling
and so much more…
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 Online Entrance Counseling

Improvements schools asked for:

4Integrated with Direct Loan
Servicing Web site
4Students can retake the session
multiple times
4Students can select multiple
schools and add schools without
having to retake the session

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 Entrance Counseling
provides borrowers with…

Basic facts about:

4 Federal Direct Loans
4 Managing education expenses
4 Other Financial Resources
4 Borrower Rights and Responsibilities 7
 Entrance Counseling
Online Adoption Rates Growing!

400,000

300,000

200,000

100,000

0
2000 - 01 2001-03 2002-03 2003-04
Academic Year
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 Exit Counseling
provides borrowers with…

4 Direct Loan and Non-Direct Loan Balances

4 Repayment Plan Information
4 Ability to Enroll in Electronic Services

4Consequences of Default
4Overview of Entitlements
4Borrower Rights and Responsibilities
and much more…
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View Direct and Non-Direct Loan
Balances

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 Select Repayment Plan

Borrowers must choose a repayment

plan before continuing.

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Budget Calculator

The Budget
Calculator is a tool to
help borrowers
budget their money –
allowing a realistic
picture of monthly
expenses.

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 Entrance and Exit Counseling
provide schools with…
http://www.dl.ed.gov/schools

Ø Real time access to results

Ø Electronic Report Delivery with frequency determined by school –
daily, weekly or monthly
Ø Ability to export data into format of school choice
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 Exit Counseling
Adoption Rates Struggling!

400,000

300,000
Entrance Sessions
200,000
Exit Sessions
100,000

0
2000 - 2001- 2002- 2003-
01 03 03 04
Academic Year

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 We Heard You!

On the Horizon
Ø Publications
Ø For Borrowers
• Integrated Consolidation

• Interactive Video Sessions – Real Time Player

• Grace Counseling with E-Minders

• High Balance Counseling

Ø For Schools
• LSDA
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 On the Horizon
Integrated Consolidation
Key Points:
• Home page
provides users
with with access
to secure (PIN
access) and non-
secure data
(glossary, site
map, etc.)
• Initial “Loan
Consolidation”
screen provides
borrowers with an
outline of the
consolidation
steps as well as a
link to find out
more about
consolidation.
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 On the Horizon
Integrated Consolidation

Key Points:
• Loan information
for loans contained
w/in database and
NSLDS are pre-
populated for
borrowers.
• Borrowers can
select which loans
to include in
consolidation.
• Additional loans
can be provided.

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 On the Horizon
Integrated Consolidation

Key Points:
• Consolidation
repayment
schedules are
calculated real-time
taking into account
the loans selected
(previous page).
• Plan comparisons
showing
consolidation
monthly and total
savings.

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 On the Horizon
Integrated Consolidation

Key Points:

• Ability to cross
promote additional
electronic services.
• Highlights additional
savings that can be
achieved from enrolling
in the EDA program.
• Option for enrolling in
Electronic
Correspondence is
provided.

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 On the Horizon
Integrated Consolidation
Key Point:
Loan Consolidations can be performed in a
real-time mode for borrower loans
contained within the Data Repository.

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 On the Horizon
Interactive Video Sessions

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 On the Horizon
Grace Counseling

4 Targets borrowers most likely to

default, such as borrowers who
separate before graduating
4 Proactively notifies borrowers of
rights and responsibilities before
they enter repayment
4 Lets borrowers know that they
have options!

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 On the Horizon
High Balance Counseling

Key Points:
• Rule based
messages are
provided to
borrowers based
on their loan
information.
• Borrowers can
view loan
information for all
loans contained
within CSB and
NSLDS.
•High Balance
Counseling also
will be presented
in Exit Counseling
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 On the Horizon
School Site – New Look

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 On the Horizon
LSDA

Key Points:
• Student account
information
contained w/in
database and
Reports are
available online.
• Home page
option added to
further encourage
Late Stage
Delinquency.

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 On the Horizon
LSDA
Key Points:
• Schools can track their
collection activities in
support of the Late Stage
Delinquency Program
online.
•Schools can drill down for
a more detailed view of a
delinquent account.
• Schools can send emails
and letters to delinquent
borrowers in bulk w/out
re-typing contact
information stored w/in the
database.

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 On the Horizon
LSDA

Key Points:
• Schools can
provide updated
contact information.
•Schools can view
NSLDS data from
Site.

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 In Summary
• The benefits…

• Provides many online self service features

• Helps borrowers budget and plan for the future

• Integrated view of products and services

• Real time access to account information

• We need your HELP!

• Send us your comments or suggestions on additional ways we can

enhance our products and services. Visit us in the PC Lab or email us
from your school site.

www.dl.ed.gov/schools

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We appreciate your feedback and
comments. We can be reached:
Claire “Micki” Roemer
Phone: (202) 377-3452
Email: claire.roemer@ed.gov

Cindy Battle
Phone: (202) 377-3261
Email: cynthia.battle@ed.gov
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